Thailand Property Lawyer

Panuwat Krishnamara

Khun Panuwat "Por" Krishnamara joined Siam Legal in 2021 as a legal consultant for the property section. He is responsible for assisting in writing demand letters, drafting and reviewing contracts, conducting property due diligence, drafting Thai wills, and providing support for our litigation, corporate law, and family law teams.

Por’s hard work, exceptional ability, and extensive experience have been instrumental in developing Siam Legal’s property division into one of the most trusted and effective legal teams in Thailand. He has assisted clients ranging from private individuals to large corporate developers. In recognition of his achievements, he was appointed head of Siam Legal’s property team in 2022.

• Earned his law degree from Thammasat University International Program in Bangkok
• Fluent in English and well-versed in Western culture
• Completed training as a standby court interpreter for Thai–English legal interpretation
• Has previous experience reviewing and developing personal data protection policies (PDPA) to align with its implementing guidelines

As a person with extensive experience in property law, he can expertly guide clients through the often difficult and unclear landscape of Thai property law. He is a well-known figure at Thai land offices, ministerial departments, and other government offices with which he regularly collaborates during the course of his work.

Por is highly knowledgeable in the mechanisms and practices of land transfer and ownership in Thailand and is capable of drafting various legal documents critical to this area of practice, including Sale and Purchase Agreements, Loan Agreements, Mortgage Agreements, Lease Agreements, and Thai Wills.

Thanks to his significant experience and exceptional talent, Por is a valuable resource for foreigners in Thailand who are interested in buying real property in Thailand.

As head of the property team, Por has been asked all manner of questions regarding Thai property by foreigners who are looking to acquire land, houses, villas, or condominium units. Here, he shares his knowledge with the public so that foreigners everywhere can get their questions answered.

What Are the Restrictions on Owning Land in Thailand?

A foreigner or a foreign juristic entity, such as a company, foundation, or association of which the majority of shares are held by non-Thai nationals, is prohibited by Thai law from owning land in Thailand.

What Are the Restrictions on Buying a House or Other Buildings on Land?

According to the Thai Land Code, any foreign national or company may own a house or structure built on land that is either owned by or is leased from a Thai national. In practice, this is not always the case.

In my experience, many authorities, such as land offices, refuse to recognize foreign ownership of houses, particularly when the buyer is a foreign company. In this event, the claim is generally that this is a way to overcome or avoid the law regarding foreign ownership of the land. However, when foreign individuals wish to purchase only the structure, with our assistance, we have never had a case rejected on this basis.

What Are the Ways For a Foreigner to Own Land in Thailand?

While foreigners face restrictions on land ownership in Thailand, there are some ways for foreign individuals or corporations to acquire property without circumventing Thai law. Each option has its corresponding opportunities, advantages, and disadvantages. The outcome depends on the specific circumstances of each case, particularly regarding the foreign juristic entity.

Continue reading to see the general information for each option. Specific advice on any particular matter is context-sensitive and should be discussed in advance with a Thai lawyer.

1. Setting Up a Thai Company That Would Operate a Real Business

One way for foreigners to own land or a house is by setting up a Thai Limited Company. A foreigner can purchase a piece of land that will be owned by the Thai Limited Company, provided the majority of the company shares are Thai-owned. To be considered a Thai company, at least 51% of the total shares must be held by Thai nationals, and the majority of shareholders in the business must be Thai.

In this scenario, a foreign owner may have control of the company and freehold ownership of the land. This option can be costly, requiring significant expenses and paperwork. The expenses and costs involved can be demanding, and they may become costly over time because of annual taxes.

Additionally, if the company is not conducting any actual business and is established with the sole aim of the purchase of property, this may be deemed as an attempt to bypass the law regarding land ownership restrictions for foreigners. My advice is to only consider this route if a company engaged in ongoing, legitimate business will hold the land title.

2. Through Leasehold

As per the Thailand Civil and Commercial Code, a long-term lease is another alternative legal option for foreigners to use, stay, occupy, and utilize land for residential purposes temporarily. One challenge with lease agreements is when the tenancy is terminated, such as during a breach of contract (when the lessee has to leave before the agreed date) or when the lessee violates a specific rule mentioned in the agreement. In this case, the lessor will be entitled to terminate the lease, and the lessee may not be able to collect their deposit that they paid in advance.

Another downside of this option is that the property lease agreement in Thailand is terminated upon the death of the lessee. This is because a lease right is an exclusive, personal right granted by the lessor to a specific lessee. However, the lessor and the lessee can indicate in the agreement that the lease right can be inherited. Without a clear statement to this effect, the lease right cannot be inherited and is extinguished once the lessee passes away.

3. A Foreigner Can Own Land if Permitted by the BOI

A foreign juristic entity with substantial investments benefiting the Thai economy can buy land if it obtains investment promotion from the Thailand Board of Investments (BOI). BOI promotion is required if the land is to be used for the promoted business and the company has more than 49% of its shares held by a non-Thai national(s) or has more foreign shareholders than Thai shareholders.

4. By Virtue of the Act of Industrial Estate Authority of Thailand

A foreign juristic entity will be entitled to own land if it operates within an estate or location of an Industrial Estate. This must also be approved and supervised by the Industrial Estate Authority of Thailand (IEAT) under Section 44 of the Industrial Estate Authority of Thailand Act.

(For more information, visit our page on Foreign Ownership of Industrial Land).

5. By Virtue of the Petroleum Act

Under Section 65 of the Petroleum Act, a foreign juristic entity may have special privileges and exemptions for land ownership granted for the duration of its business in Thailand if it receives concessions for oil and/or gas operations throughout the concession period.

For Leasehold, What is the Maximum Length of Time Under Thai Law?

A long-term lease will allow you to use, occupy, and enjoy a property for a certain period of time. Thai law allows foreigners to lease real property in Thailand, such as land, for a maximum duration of 30 years. Leases may be renewed for another term if both parties agree to renew and register the new lease after the expiration of the original 30-year agreement. The common lease extension terms, often seen in Thai lease agreements (e.g., 30 + 30 + 30 years), are unenforceable.

If the lessor/landlord does not voluntarily honor any clause regarding the renewal of the lease upon the expiration of the first lease term, the lessee will have no choice but to attempt to exercise his or her right in court. However, it cannot be said with any certainty that the judgment of the court at that point in time will be in the lessee’s favor.

If the Owners Decide to Sell Real Estate, What Are the Property Taxes and Fees?

The total government fee is around 5-10% of the declared sale and purchase price or the government appraisal, depending on whichever is higher. The breakdown of the taxes is as follows:

• Withholding tax of the seller on a progressive rate of approximately 1% of the market value.
• Transfer fee at the rate of 2% of the government appraisal value.
• Specific Business Tax at the rate of 3.3% of the declared sale and purchase price or the government appraisal value, depending on whichever is higher. Specific Business Tax will apply only if the seller has held ownership of the property for less than 5 years or their name is in the household registration (bluebook) for less than 1 year.
• Stamp duty at the rate of 0.5% of the declared sale and purchase price or the government appraisal value, depending on whichever is higher. Stamp duty only applies if the seller has owned the property for more than 5 years or their name is in the household registration (bluebook) for more than 1 year. 
• Some small administrative fees.

The ownership and transfer of land, houses, or condominium units will be registered at the Land Office after the payment of transfer fees and taxes has been made in full.

Seeking Useful Property Services From an Experienced Property Lawyer in Thailand

Buying property, leasing land, and getting ownership transferred as a foreigner is risky and difficult without professional legal support by your side. To avoid excess stress, legal complications, and the risk of real estate fraud, reach out to Siam Legal’s Property Team for assistance. We are a full-service law firm that has helped foreigners for over 20 years and with offices in major provinces all throughout Thailand, including Bangkok, Chiang Mai, Pattaya, Samui, and Phuket.

Our lawyers are well-versed in Thai property law and offer services that will help you find a home or build a presence for your business in Thailand. Regardless of the property-related applications and processes you’re going through, we’ll assist you every step of the way by handling all important paperwork, document filing, and communication with the relevant authorities on your behalf.

We also host consultations to explore your property-related needs and find the best course of action. You can visit us in person at our head office on the 18th Floor of Two Pacific Place on Sukhumvit Road in Bangkok. If you have any property questions or issues that need to be addressed, you can call us using the phone numbers below.